Thailand’s resale market: the deal, a non-refundable deposit and forged powers of attorney

A deal for a completed unit in Thailand runs as follows: offer, deposit, document check, then settlement and registration at the land department within 1 day. On the resale market the deposit is almost always non-refundable. The main risk is a seller acting under a forged power of attorney, so contact the owner directly.

How does a resale deal work?

• an offer to the seller and agreement on price;
• the deposit;
• a check of the documents and the unit;
• preparing the papers for registration;
• final settlement — usually right at the land department.

The ownership document in the new owner's name is printed there too, on the day of the transaction.

Will the deposit be returned if the deal falls through?

On the resale market the deposit is non-refundable in almost every case. With a developer, by contrast, it is more often refundable.

The exception is document problems revealed by the check. But that condition has to be written into the deposit agreement: it does not apply by itself.

How much is paid on transfer of title?

The main fee is 2% of the transaction price. The law does not say who pays it: the parties usually pay 1% each, but a seller letting the unit go cheaply may shift the full 2% onto the buyer.

One more payment is calculated on the appraised value. The land department sets it, and the parties learn the exact amount only on the day of the transaction. Only the order of magnitude is known in advance.

How do you settle safely with the seller?

A practitioner with 12 years in Thailand named two methods he trusts: a banker's cheque, or settlement at the department itself at the moment of registration.

Between compatriots you come across arrangements involving bank safe-deposit boxes and settlement through a lawyer. The more complicated the arrangement, the more points at which the money and the title part ways in time.

Why are powers of attorney dangerous?

The most common frauds on the resale market involve powers of attorney: the unit is sold by a “representative”, and the power of attorney is forged. That is how one unit gets sold several times.

• the power of attorney must be notarised;
• the owner is asked to get in touch in person;
• the title deed is checked at the land department before any money changes hands.

A developer cannot sell the unit itself twice — double sales happen precisely through powers of attorney and contract assignments.

How long a sale takes

From 5 months to 2 years. Why it takes so long and where buyers are found is covered in our piece on the liquidity of Thai property.

Frequently asked questions

Is the deposit refundable when buying a resale unit in Thailand?

As a rule, no. It can be recovered only if the agreement contains a refund condition for document problems.

Where does final settlement take place?

Most often at the land department, on the day of registration. The ownership document in the buyer's name is printed there too.

How do you check the seller's power of attorney?

Make sure it is notarised and contact the owner themselves. The unit's title deed is checked at the land department.